LOUISVILLE — Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) is now the official CBD sponsor for Major League Baseball, the company announced Wednesday in a news release.
The sponsorship deal is the first of its kind; no major professional sports league has formed a sponsorship agreement with a CBD company before.
“Nature is the most intelligent and advanced technology system in our world, and when we work with nature for health and innovate through the lens of community care, we can truly redefine what it means to be well as an athlete,” said Jared Stanley, Charlotte’s Web co-founder and chief operating officer, in a prepared statement. “This is game-changing, and I am excited by what we can accomplish with the MLB partnership.”
Along with the partnership, Charlotte’s Web is launching a line of sports products starting with Daily Edge, a CBD tincture that underwent strict testing and was uniquely designed to adhere to MLB’s banned substances policy.
Charlotte’s Web will have premier brand presence at MLB events throughout the remainder of the 2022 postseason and World Series, as well as events such as next season’s All-Star game.
The sponsorship deal runs through 2025. Charlotte’s Web will pay MLB $30.5 million in rights fees over that time, as well as 10% of gross revenue from MLB-branded products past $18 million in sales.
Charlotte’s Web also issued MLB about 6.11 million in shares of its common stock, representative of around 4% of all outstanding shares.